STRATEGIES FOR BUSINESS IN MOSCOW Too much water drowned the miller A PROPOS When it comes to roads, the words of the great Russian In Soviet times, no one really had the need for good classic Nikolai Gogol come to mind: “Russia has two roads either. A car was a luxury item for the majority of woes: fools and roads.” Well, as far as fools go, they citizens. It only became an ordinary mode of transpor- are a dime a dozen everywhere, but when it comes to tation in the last 10-15 years. In other words, Russia roads, there is a real problem in our homeland. To put it only recently got behind the wheel. No wonder there is mildly, we have none. Napoleon once remarked: “There no developed culture of driving and road etiquette. are no roads in Russia, only directions.” The French In terms of the number of cars, the leading city in Rus- Emperor knew what he was talking about. It was the sia is, of course, Moscow. The capital, with a population absence of roads in Russia, after all, that contributed to of 12 million people, boasts about 5 million officially his defeat to a certain extent. Napoleon’s transport was registered vehicles. “Cars, cars,” — sings Valeri Leon- designed for paved roads. The French carts broke down tyev, “are everywhere/ Over century old dust/Car tracks quickly on mud and sand, causing frustration and panic have passed.” The number of cars in the capital grows among the troops. by 8-9% every year. Russians themselves have long since become accus- That’s way more than just a few. We clearly need good tomed to a lack of roads. By and large, it seems like roads to accommodate all of these cars. But it’s not they never felt the need for good roads. In any case, for just roads we need. In order to avoid a transportation centuries Russians lived in insular communities. Many collapse, the city's government has put together a plan never left their home villages. Where was there to go, of initiatives to be implemented before 2020. These anyway? At the beginning of the 20th century, there initiatives will radically improve the transportation net- were only 700 cities in Russia. work in Moscow. The plan involves building new roads, reconstructing interchanges, fixing up various structures The emergence of automobiles that propelled road de- of the street and road network, building approximately velopment in the US and Europe sidestepped Russia as 80 metro stations and reconstructing 9 railway termi- well. Automobiles were always in short supply in Rus- nals and 32 stations. The Government has allocated a sia. In 19 14 – one hundred years ago – the were only total of 2.9 trillion rubles for the project. 14,000 cars in Russia. They could primarily be found in St. Petersburg, where pedestrians shied away from At that rate, Nikolai Gogol’s commonly quoted saying them in terror. During this same time period, there were will soon cease to be relevant — it will simply become a a over a million cars on the roads in the United States. thing of the past. Sergo Kukhianidze Editor in Chief CAPITAL IDEAS Founder: Department for External Economic and International Relations of the Government of Moscow Address: Tverskaya, 13, Moscow, 125032. Ph: +7 (495) 633-68-66 Fax: +7 (495) 633-68-65 E-mail: [email protected] Moscow official www.dvms.mos.ru Editorial staff: News Editor-in-chief – Sergo Kukhianidze Production crew of the edition: Elena Egorova (deputy editor-in-chief), Sergei Sobyanin, the Mayor of Moscow met with the Governor of Tokyo Evgeny Khokhlov, Dmitry Sokolov, Marina Ogorodnikova, Alexander Pigarev, Anna Tomkins, Marina Yurshina, Tatyana Akimova, Ivan Skorikov, Moscow days in Vienna Anastassia Paloni, Sergei Levin 6–9 CAPITAL IDEAS STRATEGIES FOR BUSINESS IN MOSCOW Publisher: Moscow Center for International Cooperation 10–15 CEO: Igor Tkach Address: 105005, 68/8, build.1, Baumanskaya str., Moscow, Russia Face to Face Phone: +7 (499) 267-46-56 E-mail: [email protected] Transportation development General Partner: National Review Ltd in Moscow is our priority CEO – Sergei Oposhnyanskiy Is Moscow at a risk of a transportation collapse? Is the Phone.: +7 (495) 784-69-71 fame and glory of the Moscow metro on its way to E-mail: [email protected] becoming a thing of the past? Marat KHUSNULLIN, Consulting – Sergei Anikanov, Evgeny Khokhlov the Deputy Mayor at the Government of Moscow for Design – Robert Saifulin Urban Development and Construction, answers these Photo editor – Victoriya Oposhnyanskaya questions and addresses other issues in his exclusive Page layout – Alexander Saifulin interview with Capital Ideas. Assistant – Nadezhda Ratanova 16–17 Distribution – "Trans-Media" Ltd Acknowledgements to: City’s graph PHOTO ITAR TASS Agency, RIA-Novosti, All Over Press Agency, mos.ru, companies and organizations, represented in the issue. Planned budget for the If you wish to get new issues of Capital Ideas, please, apply to: [email protected] development of new The magazine is registered with at the Federal Authority of Legislative Control in Mass Media and Cultural Heritage Protection. Media registration certificate ФС77-53716, issued April 26, 2013. transportation infrastructure All reproduction permitted only with the Editor’s permission and reference to ‘Capital Ideas’. between 2012 – 2020 Distributed free of charge Published with support from the Department for External Economic and International Relations of the Government of Moscow Circulation : 7000 Signed into print 29.09.2014 16+ Interview Nothing Ventured Nothing Ventured Our goal is to create a A leader in Russia must city that is comfortable My heart has two countries and two homes: be strong! and easy to get around Peter Vullinghs, CEO of Philips in Russia Deputy head of the State Public Moscow and Berlin and CIS countries, shared with readers of Institution “Center of traffic organization Jörg Schreiber was born in Berlin but knows Capital Ideas his observations about the of the Government of Moscow” and Head Russia as well as his native country. He is changes in the country which he has seen in of the CODD Situation Center Alexander undoubtedly one of the most famous and recent years, his secrets of business success, Evsin talks about the development of road influential people in the Russian automotive declared his affection for Russian people and safety and traffic engineering business. explained why he loves living in Moscow. 18–20 34–38 46–49 22–23 40–45 Moscow in words Nothing Ventured 24–29 Management of Hitachi Moscow Global supports business Our relationship is the at development in Russia According to one of the famous Russian its best point in history proverbs, "Moscow was not built in a day." The incumbent Chinese Ambassador to Russia Li But it is more accurate to say, "Moscow Hui answered Capital Ideas’ questions. never stops building." In every part of the city today, you can stumble on a fenced site of a 30–32 new building or renovation. And often, bright orange excavators with the brand name Interview HITACHI inscribed on them can be found on I'm always on the side these sites. of business In the Russian capital, a new institution has emerged: the Institute of the Commissioner for the Protection of the rights of entrepreneurs. What does it do? This is a Capital Ideas interview with the Head of the Institute, Mikhail Vyshegorodtsev. October-December 2014 CAPITAL IDEAS 3 Nothing Ventured Moscow: the specifics Travel Nothing Ventured of the vending Unique garden in Fun to Live – Fun to machine market During the Soviet years, stopping by for the center of Moscow Drive a glass of mineral water from a vending There are different types of gardens: flower gardens Yoshiaki Ichimura is the head of Subaru machine was a pleasant treat for people and vegetable gardens. In Moscow, not far from Motors LLC. He started working as CEO of taking walks in the center of Moscow. Prospect Mira metro station, there is an unusual the company in August 2013. Ichimura-san Today, these vending machines are once garden that is markedly different from typical gardens. talked about his life and work in the Russian again appearing on the city's streets, and It was founded in 1706 and its first director was the capital in an interview with Capital Ideas. they sell a lot more than just water. famous German medical doctor Traugott Gerber. 50-54 58–60 66-69 56–57 62–65 72–74 Nothing Ventured Nothing Ventured Bookshelf Full Tank of Electricity We only make Making perfect The bright colorful future described by shoes with fur Teri Lindeberg, founder and CEO of twentieth-century Russian science fiction Staffwell, is a remarkable woman. She has not materialized. However, one part for Russia! knows all the ins and outs of doing of it—electric cars, can already be seen The Swedish shoe company business in Russia. She is the author zipping through the streets of Moscow. Vagabond, which produces stylish of a great book called Making Perfect, and original footwear, has entered the which is about what employees want Russian market with a bang. Andreas from their employers. Here is an excerpt from the book. Oden, CEO of Vagabond, spoke with Capital Ideas magazine about his strategy to develop the brand in Russia and what differentiates Russian and European consumers. 4 CAPITAL IDEAS October-December 2014 Life&Culture Knowledge is power Fall in Moscow: Education in English party for everybody There are several schools throughout In Moscow, fall is the “hottest” season. Moscow that provide the highest The weather cools down, it is cloudy international level of education with and damp outside, yellow leaves dance courses taught in English.